1. Stay Disciplined—To learn how to manage risk effectively.
2. Keep Objective—To trade in a non-emotional, intelligent way.
3. Trade with Confidence—To know exactly when to trade.
4. Become Systematic—To generate your own Forex buy/sell signals.
When is the best time to trade?
Because the Forex Market is open 24hrs a day, and traded on a global scale, the question to ask is, ‘when should I trade?’. The good news is that no matter what time zone or hemisphere you live in globally, there are always good opportunities to trade.
The three major trading ‘sessions’ are as follows (all in Eastern Standard Time):
1. New York open 8:00 AM to 4:00 PM
2. Japanese/Australian open 7:00 PM to 3:00 AM
3. London open 3:00 AM to 8:00 AM
1. Trade the Breakout
The principle behind trading the breakout is to enter a trade when the price ‘breaks out’ of a tight range, because often it tends to keep moving in the same direction.I use my Bollinger Bands on my charts to spot this trading opportunity.
2. Trade the Trend
Trading the trend is just like trading the breakout, except in less volatile market conditions.
3. Trading Tops and Bottoms
Trading tops and bottoms can be more risky that the other two strategies because you are trading against the trend anticipating the market is overbought/oversold and might turn in the other direction. It is best to use the 10 or 15 minute charts for this method. It is more risky using the 5 min charts, but you still can apply the same techniques.
When to EXIT trades – The goal of this day trading guide is to teach traders to take 5-20 pip profits at a time. You can set profit LIMIT orders to achieve this, or you may want to move your stops as your position becomes more and more profitable. Make sure that you don’t let a winning trade become a losing one, by using trailing stop orders.
2. Keep Objective—To trade in a non-emotional, intelligent way.
3. Trade with Confidence—To know exactly when to trade.
4. Become Systematic—To generate your own Forex buy/sell signals.
When is the best time to trade?
Because the Forex Market is open 24hrs a day, and traded on a global scale, the question to ask is, ‘when should I trade?’. The good news is that no matter what time zone or hemisphere you live in globally, there are always good opportunities to trade.
The three major trading ‘sessions’ are as follows (all in Eastern Standard Time):
1. New York open 8:00 AM to 4:00 PM
2. Japanese/Australian open 7:00 PM to 3:00 AM
3. London open 3:00 AM to 8:00 AM
1. Trade the Breakout
The principle behind trading the breakout is to enter a trade when the price ‘breaks out’ of a tight range, because often it tends to keep moving in the same direction.I use my Bollinger Bands on my charts to spot this trading opportunity.
2. Trade the Trend
Trading the trend is just like trading the breakout, except in less volatile market conditions.
3. Trading Tops and Bottoms
Trading tops and bottoms can be more risky that the other two strategies because you are trading against the trend anticipating the market is overbought/oversold and might turn in the other direction. It is best to use the 10 or 15 minute charts for this method. It is more risky using the 5 min charts, but you still can apply the same techniques.
When to EXIT trades – The goal of this day trading guide is to teach traders to take 5-20 pip profits at a time. You can set profit LIMIT orders to achieve this, or you may want to move your stops as your position becomes more and more profitable. Make sure that you don’t let a winning trade become a losing one, by using trailing stop orders.
